By Virginia Vilariño Coordinator of the Climate and Energy Area Argentine Business Council for Sustainable Development (CEADS)
The impacts of climate change are already affecting every region in the planet and lead the ranking of global risks to development to which we will be exposed in the next decade, according to the World Economic Forum’s Global Risks Report 2024
Aware of this reality, as evidenced by increasingly frequent and intense extreme events, the international climate action agenda has been marked by the global goals established in the Paris Agreement, which seek to limit global warming to levels that avoid the most catastrophic and irreversible impacts on the climate system and thus allow us to adapt our societies and production systems in order to be more resilient.
Specifically speaking, these global efforts are made clear in goals to reduce greenhouse gas (GHG) emissions in the medium and long terms:
- Global CO2 emissions must be reduced by 45% by 2030 (in comparison with 2010 levels).
- Global CO2 emissions must reach “net zero” by 2050.
- In addition, other GHGs, especially methane (CH4) and nitrous oxide (N2O), must be significantly reduced.
The sooner global emissions are reduced, the greater the chance of limiting global warming to 1.5°C and the fewer the challenges we will have to face in the transition to a decarbonized economy. But without a systemic, society-wide transformation and rapid implementation of ambitious goals, limiting global warming to 1.5°C while achieving a sustainable development will be extremely difficult. Therefore, every country and actor will need to strengthen their contributions as a matter of urgency.
For the business sector, the goal of net-zero emissions is the new standard for corporate climate action. Over 6,000 companies in 70 countries and 15 different industries, representing more than a third of global market capitalization, already have goals to reduce their emissions by 50% by 2030 and achieve net-zero emissions by 2050, in keeping with the ambitious level established in the Paris Agreement. In turn, these international companies are encouraging climate action among about 20,000 SMEs worldwide, which together account for 60% of the global market.
While they manage and reduce their emissions, the companies admit that climate change poses financial risks to their businesses: 83% of the companies in the world admit that they face physical risks as a result of climate change and 88% state that policy changes and new regulations will be the main risks to be faced in the transition to a low-carbon economy.
To conclude, I would like to emphasize that these ambitious climate goals are not only possible, but they are also an opportunity for development and innovation in every economic sector, provided that the right policies and incentives are designed. And, for such purpose, it is crucial that the private sector get involved and participate responsibly in the design and implementation of the country’s climate policies, especially for its sector. The challenge we face is not technological: the best available science tells us that we already have the options to reduce emissions by 50% in each productive sector by 2030.
Learn about Citrusvil’s climate transition plan here.